Can I Transfer Shares From One Broker to Another?

Back when you started your investment journey you may have chosen your broker for reasons of convenience, reputation, or simply because they seemed cheap. However, maybe your priorities have changed, and you want to transfer your shares from one broker to another.

So, find out how to transfer your investments to another broker, as well as the best platforms to consider moving to.

Also see: Best online brokers

Best platforms to transfer investments

When choosing a new broker or platform to transfer existing investments over to, your priority should be to find one that both meets your needs while also not charging transfer fees if you need to move on again.

Fortunately, there are plenty of brokers and platforms across the financial services industry that will offer this service.

Investors in the US are lucky enough to have a huge choice of investment and brokerage apps and providers available on the market. The good news is that switching brokers, for whatever reason you may have, is easy as pie. In fact, I would encourage investors to shop around and regularly see what new platforms are available, even if you feel satisfied with the service that your current platform offers.

How do I transfer stocks from one broker to another?

The transfer of other assets, such as stocks, between brokers is also managed by the ACATS service and as such is identical in both timescale and process.

Just be aware that, regardless of the transfer you wish to complete, it may be subject to a transfer fee by your old broker, though you may find that your new brokerage provider is more than happy to cover this on your behalf.

Cash transfer

Another way that you could transfer funds into your new account is by simply cashing out with your old broker and then transferring the cash. You can sell your investments yourself or instruct your broker to sell them on your behalf and then transfer the value over to a new broker.

Cash transfers tend to be more straightforward than in-specie transfers, meaning they’re typically carried out sooner. However, you obviously also run the risk of missing out on investment returns in the meantime or having to sell at a time when the price isn’t favorable for you.

Can I transfer all my stocks from one broker to another?

Yes, you can complete a full transfer of your stocks to another broker.

Can I transfer part of my portfolio from one broker to another?

Alternatively, you can also transfer part of your portfolio. This is known as a “partial transfer”. Bear in mind that by doing this, you may have to pay commission and/or dealing account fees to two brokers, rather than just one.

Beware exit fees

Before you decide to go ahead with an asset transfer you should check whether your current broker is going to levy exit fees on you. These fees could make it less cost-effective for you to move, even if you’d be going to a cheaper service. That said, many brokers are more than happy to cover the costs you may incur if you decide to open an account with them.

You should also check whether your new service has exit fees. This is important to do as, if you transfer over and then realize it isn’t the right broker or platform for you, you may have to pay even more to move again. In other words, prior to opening an account with a new broker, do the math and check whether the total savings and value proposition are right for you.

Why transfer to another broker?

There are various reasons why you might want to consider transferring to another broker. Realistically, the best broker for you will depend on your personal circumstances and your investment goals.

Lower fees

Whether that’s your share dealing account fees or commission fees when you buy and sell, another broker may have better rates and fees.

Greater choice of investments

Some brokers and platforms may offer a wider range of investments that you’re interested in buying. For example, if you wanted to invest in crypto, you’d need a broker such as eToro who offers this service.

Better customer service

You may have had a bad customer service experience with your current broker, and so want to move to a different one where you feel you may be treated better.

Better user experience

Some brokers offer a superior user experience, whether that’s on an app or on their website.

Checking the SEC Register

One other crucial thing to remember when transferring money or assets to another broker or platform is to check that the firm is listed on the Securities and Exchange Commissions (SEC) website.

The SEC has an online database of firms who are registered with the commission and, as such, are also subject to self-regulatory organization. The Register includes a firm’s basic details, such as its registered office and company number, as well as specific permissions for what sort of financial activities it can carry out.

Make sure you check that your new broker is listed on the Register so that you can be confident that the service it’s offering you is genuine.

Conclusion

Switching brokers is not a minor decision, so should you decide to do so, make sure you have read and re-read the terms and conditions of your old provider as well as those of the new broker. It may also be useful to do a costing forecast and see how much the switch may cost you, as well as what your potential savings will actually be in the long run. It certainly pays to shop around, but also remember that the grass is not always greener on the other side.

Please note

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Levels, bases of, and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.